Your company is planning to borrow $500,000 on a 5year, 8 percent

Your company is planning to borrow $500,000 on a 5-year, 8 percent

Subject: Business    / Finance
Question

Your company is planning to borrow $500,000 on a 5-year, 8 percent, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal?

A. a. 62.91%

B. b. 45.93%

C. c. 51.32%

D. d. 48.13%

E. e. 73.50%